Distribution of Share Capital

Distribution of Share Capital

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I understand that the Treasury solicitor Bon Vacantia division issued some guidelines in August regarding the distribution of company share capital and unauthorised distributions. My understanding is that it will be classed as a permitted distribution where the company has been struck off under s652A and approval has been granted under ESCC16 AND the share capital distibuted is less than £4,000. Is this £4,000 inclusive of share premium? In my experience the majority of small companies are wound up under ESCC16 - so is this going to cause some problems? Also, why has this note been issued now? Is there a change in policy?
Mark Moore

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